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Bank assesses 2 loan applications. LoanA - $100m for 20 years at 5.00% with equal monthly instalment payments rounded down to nearest cent last payment

image text in transcribed Bank assesses 2 loan applications. LoanA - $100m for 20 years at 5.00% with equal monthly instalment payments rounded down to nearest cent last payment will be largest - rAN(0,0.003) LanB - $100m for 2 years at 6.00% with single payment of principal plus interest at maturity - rBN(0,0.007) Which loan yields better RAROC for bank

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